Latest Update in the China Pig Iron Market

DCE iron ore was was shocked and keep downward all the day.The main contract closed at 780.5,increased of 1.30%. Traders are generally motivated to ship, Speculative demand increases.

SHANGHAI, Aug 5 (SMM) - After the expectations for resumption of production of steel mills were fully digested by the market, the cautious macro sentiment and poor fundamentals dominated the price movement of iron ore.

In the first half of 2022, the steel prices rose first and then fell, but the overall steel industry was generally stable.

DCE iron ore was was shocked and keep downward all the day.The main contract closed at 756.5,decreased of 4.78%. Traders are generally motivated to ship, Speculative demand increases.

However, the production cut wills weakened with the estimated restoring profits following the fall in the prices of chrome ore and coke. Ferrochrome plants, especially those in north China, maintained high operating rates with cost advantage.

The total inventory of HRC across social warehouses and steel makers in China stood at 3.92 million mt as of August 4, down 61,700 mt or 1.55% on the week, a decrease of 2.21% on the year.

The total inventory of rebar across social warehouses and steel makers in China stood at 7.66 million mt as of Thursday August 4, down 658,400 mt or 7.9% on the week, and down 33.5% from the same period last year.

As such, SMM believes that iron ore prices will move rangebound in the near term with the slow recovery of daily pig iron production as well as the goal of stable development on the macro front.